An exclusive territory is a defined geographic area granted to a franchisee where no other franchise units—either franchised or corporate-owned—can be established. This protection reduces internal competition and allows franchisees to build a strong customer base within their area. The terms, size, and enforcement of exclusive territories vary by brand and are detailed in the franchise agreement and Item 12 of the FDD. Franchisees should review territory clauses carefully to ensure they align with their growth plans and expectations.
Exclusive Territory
This term
An exclusive territory gives a franchisee the sole right to operate in a defined area.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
